On August 19, 2024, Palo Alto Networks Inc (PANW, Financial) released its 8-K filing for the fiscal fourth quarter and fiscal year ended July 31, 2024. The California-based cybersecurity leader, known for its comprehensive platform covering network security, cloud security, and security operations, reported impressive financial results that surpassed analyst estimates.
Fiscal Fourth Quarter and Full Year 2024 Performance
Palo Alto Networks Inc (PANW, Financial) reported a 12% year-over-year increase in total revenue for the fiscal fourth quarter, reaching $2.2 billion, compared to $2.0 billion in the same period last year. This performance exceeded the analyst estimate of $2.162 billion. The company's GAAP net income for the quarter was $357.7 million, or $1.01 per diluted share, surpassing the estimated earnings per share of $0.69.
For the full fiscal year 2024, Palo Alto Networks Inc (PANW, Financial) achieved a 16% year-over-year revenue growth, totaling $8.0 billion, aligning closely with the annual estimate of $8.001 billion. The company's non-GAAP net income for the year was $1.948 billion, or $5.67 per diluted share, compared to $1.44 billion, or $4.44 per diluted share, in fiscal year 2023.
Key Financial Achievements and Metrics
The company's Next-Generation Security Annual Recurring Revenue (ARR) grew by an impressive 43% year-over-year to $4.2 billion. Additionally, the remaining performance obligation increased by 20% year-over-year to $12.7 billion, indicating strong future revenue potential.
We finished off the year with strong execution on our platformization strategy in Q4,” said Nikesh Arora, chairman and CEO of Palo Alto Networks. “As we look forward to fiscal year 2025 and beyond, we are focused on scaling our Next-Generation Security business through continued innovation and execution."
Chief Financial Officer Dipak Golechha added, "Our top-line strength showed through in our remaining performance obligation and Next-Generation Security ARR. At the same time, we successfully balanced profitable growth, as our non-GAAP operating margins increased by more than 300 basis points for the year with strong cash generation, marking one of the best years for Palo Alto Networks."
Income Statement Highlights
| Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 |
|---|---|---|---|---|
| Total Revenue | $2.2 billion | $2.0 billion | $8.0 billion | $6.9 billion |
| GAAP Net Income | $357.7 million | $227.7 million | $2.577 billion | $439.7 million |
| Non-GAAP Net Income | $522.2 million | $482.5 million | $1.948 billion | $1.44 billion |
| GAAP EPS (Diluted) | $1.01 | $0.64 | $7.28 | $1.28 |
| Non-GAAP EPS (Diluted) | $1.51 | $1.44 | $5.67 | $4.44 |
Balance Sheet and Cash Flow Highlights
As of July 31, 2024, Palo Alto Networks Inc (PANW, Financial) reported total assets of $19.99 billion, up from $14.50 billion in the previous year. The company's cash and cash equivalents stood at $1.535 billion, with short-term investments of $1.044 billion. Total liabilities were $14.82 billion, compared to $12.75 billion in the prior year, while stockholders' equity increased to $5.17 billion from $1.75 billion.
Outlook and Future Guidance
For the fiscal first quarter of 2025, Palo Alto Networks Inc (PANW, Financial) expects total revenue in the range of $2.10 billion to $2.13 billion, representing year-over-year growth of 12% to 13%. The company also anticipates diluted non-GAAP net income per share to be between $1.47 and $1.49, reflecting a 7% to 8% increase year-over-year.
For the full fiscal year 2025, the company projects total revenue between $9.10 billion and $9.15 billion, indicating a growth rate of 13% to 14%. Non-GAAP operating margin is expected to be in the range of 27.5% to 28.0%, with diluted non-GAAP net income per share between $6.18 and $6.31, representing a 9% to 11% increase year-over-year.
Palo Alto Networks Inc (PANW, Financial) also announced an additional $500 million authorization for share repurchases, bringing the total remaining authorization to $1 billion, expiring December 31, 2025.
For more detailed insights and the complete financial statements, please refer to the official 8-K filing.
Explore the complete 8-K earnings release (here) from Palo Alto Networks Inc for further details.
